Scenario Number 1
Ricky, a young man in his first job, yearns for a white sports car. He reads in an advertisement in the newspaper that there is one for sale in Banbridge. He telephones, asks some questions and then says, "I will give you £3000 for the car". The owner replies "Done! When will you collect it?" The next day when Ricky goes to Banbridge, he is disappointed that the car does not look as smart as he thought.
Must he take it?
Yes Ricky should take the car. He had offered to buy the car and the owner had accepted his offer. Unless the seller has misrepresented the car it is a legally binding contract and Ricky must pay for the car. A misrepresentation is where the seller has made an untrue statement of fact that induced Ricky to enter into the contract. It is important to realise that contracts do not have to be in writing to be legally binding.